The low prices offered by Aldi and Lidl may have secured a combined 6% share of the Irish market, but they have still to win the loyalty of the Republic’s shoppers, according to a new survey by ACNielsen.
Researchers found that the discount chains would have to improve both service levels and store design to win consumer allegiance and increase market share. And they warned that without such a change, the chains would struggle to make a long-term impact.
Despite criticisms of “rip-off Republic” and claims that grocery prices are among the highest in the EU, price was not an overriding consideration with Irish shoppers, the survey found. Instead, shoppers said well-stocked stores, easy-to-find products and being able to buy all their groceries in one place were the most important factors.
The German discount chains moved into the Irish market six years ago and have expanded steadily since then. Lidl has 60 stores across the Republic and is seeking sites for more, while Aldi has more than 30 outlets, including eight in Dublin, and also plans to expand.
But while their arrival has undoubtedly changed the Irish retail landscape and heightened competition, their concentration on keeping down prices, at the expense of all other elements in the shopping experience, has yet to win over consumers in an increasingly prosperous Ireland.
ACNielsen’s MD in Ireland, Tom Harper, acknowledged that Aldi and Lidl had been highly successful in growing their chains in Europe. But he added: “If they are to succeed in building market share and winning the minds and purses of Irish shoppers, they are going to have to adjust their model and understand the motivations of the Irish consumer.”
Neither Aldi nor Lidl would comment on the findings of ACNielsen’s survey.
Researchers found that the discount chains would have to improve both service levels and store design to win consumer allegiance and increase market share. And they warned that without such a change, the chains would struggle to make a long-term impact.
Despite criticisms of “rip-off Republic” and claims that grocery prices are among the highest in the EU, price was not an overriding consideration with Irish shoppers, the survey found. Instead, shoppers said well-stocked stores, easy-to-find products and being able to buy all their groceries in one place were the most important factors.
The German discount chains moved into the Irish market six years ago and have expanded steadily since then. Lidl has 60 stores across the Republic and is seeking sites for more, while Aldi has more than 30 outlets, including eight in Dublin, and also plans to expand.
But while their arrival has undoubtedly changed the Irish retail landscape and heightened competition, their concentration on keeping down prices, at the expense of all other elements in the shopping experience, has yet to win over consumers in an increasingly prosperous Ireland.
ACNielsen’s MD in Ireland, Tom Harper, acknowledged that Aldi and Lidl had been highly successful in growing their chains in Europe. But he added: “If they are to succeed in building market share and winning the minds and purses of Irish shoppers, they are going to have to adjust their model and understand the motivations of the Irish consumer.”
Neither Aldi nor Lidl would comment on the findings of ACNielsen’s survey.
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